Correlation Between Fulgent Sun and Paiho Shih
Can any of the company-specific risk be diversified away by investing in both Fulgent Sun and Paiho Shih at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fulgent Sun and Paiho Shih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulgent Sun International and Paiho Shih Holdings, you can compare the effects of market volatilities on Fulgent Sun and Paiho Shih and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fulgent Sun with a short position of Paiho Shih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulgent Sun and Paiho Shih.
Diversification Opportunities for Fulgent Sun and Paiho Shih
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fulgent and Paiho is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fulgent Sun International and Paiho Shih Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paiho Shih Holdings and Fulgent Sun is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fulgent Sun International are associated (or correlated) with Paiho Shih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paiho Shih Holdings has no effect on the direction of Fulgent Sun i.e., Fulgent Sun and Paiho Shih go up and down completely randomly.
Pair Corralation between Fulgent Sun and Paiho Shih
Assuming the 90 days trading horizon Fulgent Sun International is expected to under-perform the Paiho Shih. But the stock apears to be less risky and, when comparing its historical volatility, Fulgent Sun International is 1.27 times less risky than Paiho Shih. The stock trades about -0.15 of its potential returns per unit of risk. The Paiho Shih Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,710 in Paiho Shih Holdings on September 13, 2024 and sell it today you would earn a total of 240.00 from holding Paiho Shih Holdings or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fulgent Sun International vs. Paiho Shih Holdings
Performance |
| Timeline |
| Fulgent Sun International |
| Paiho Shih Holdings |
Fulgent Sun and Paiho Shih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulgent Sun and Paiho Shih
The main advantage of trading using opposite Fulgent Sun and Paiho Shih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulgent Sun position performs unexpectedly, Paiho Shih can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Paiho Shih will offset losses from the drop in Paiho Shih's long position.| Fulgent Sun vs. Feng Tay Enterprises | Fulgent Sun vs. Ruentex Development Co | Fulgent Sun vs. WiseChip Semiconductor | Fulgent Sun vs. Novatek Microelectronics Corp |
| Paiho Shih vs. Feng Tay Enterprises | Paiho Shih vs. Ruentex Development Co | Paiho Shih vs. WiseChip Semiconductor | Paiho Shih vs. Novatek Microelectronics Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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